Benson Elliot, acting on behalf of its pan-European fund Benson Elliot Real Estate Partners IV (BEREP IV), has sold its 74.9% stake in GWB Elstertal Geraer Wohnungsbaugesellschaft mbH (GWB) to an affiliate of Thueringer Aufbaubank, a public entity controlled by the German State of Thuringia. The consideration for the transaction implies an enterprise value for the company of €175m.
Benson Elliot acquired the majority stake of GWB in August 2016. At the time, the communal housing company-owned and managed a portfolio of c. 6,700 residential units, encompassing 402,000m² across 330 assets, in Gera, the third-largest city in the Federal State of Thuringia in central Germany.
Since the acquisition, under Benson Elliot’s oversight GWB’s portfolio has been significantly improved through the introduction of best-in-class leasing and operational management processes to refurbish and lease the core residential properties. Non-core and obsolete holdings were disposed of, and a comprehensive portfolio refinancing was completed with Landesbank Baden-Wurtemburg.
Joseph DeLeo, Benson Elliot Senior Partner, said: “The entire team has worked closely with the City of Gera and the senior lender to define and execute the business plan effectively. We’re confident that GWB’s new owners will continue the positive work we’ve started, further improving this portfolio responsibly for the local community.”